Bhubaneswar: In a cabinet meeting on Wednesday, the State government has decided to revoke the VAT benefits to Indian Oil Corporation Limited (IOCL) for its Paradip refinery. This was one of the 10 issues discussed in the meeting.
The State government has decided to cancel the MoU with IOCL signed in 2004 in which a 11 year deferment of VAT on petroleum products from the refinery sold in the state was included. Since the refinery came up six years late, the Odisha government has incurred losses in terms of deferred taxes repayment by IOCL.
As per sources, Odisha is losing revenue of about Rs 2000 crore every year owing to the VAT deferment which could add up to Rs 69,000 crore till the deferment ends.
Also, people losing land in irrigation projects will be compensated soon. The state government has agreed to be a guarantor in the Rs 15 crore Aska co-operative Sugar Mill. At least five percent VAT will be collected on fly ash. A separate cadre will be made for Group C employees in veterinary field.